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Why MiMedx Group Inc. Stock Fell Today

What happened

Shares of MiMedx Group(NASDAQ:MDXG), a company focused on regenerative medicine, fell as much as 20% today after federal prosecutors charged three healthcare workers with accepting bribes from the company. Shares recovered and closed the day down about 7.5%.

So what

Bloomberg today reported that federal prosecutors allege that MiMedx paid bribes to three healthcare workers at the Veterans Affairs Department to promote the use of the company's products. The alleged bribes included direct payments, meals, trips, and speaking fees.

It is worth noting that neither MiMedx nor any of the company's workers have been directly charged and the company did not comment for the Bloomberg article. Three people have been indicted, according to Bloomberg, but that is not a finding of guilt. However, given all of the otherdrama going with the company right now, it is understandable why traders are shooting first and asking questions later.

Image source: Getty Images.

Now what

Today's news should only add fuel to the fire that is raging against this company.

I'd advise potential bulls to steer clear of this troubled company and focus their attention on more promising opportunities.

Author

Brian Feroldi has been covering the healthcare and technology industries for the Motley Fool since 2015. Brian's investing goal is to find the highest quality companies that he can find, buy them, and then to sit back and let compounding work its magic. See all of his articles here and make sure you follow him on Twitter.
Follow @brianferoldi